A Comprehensive Guide to ST Stocks Under Corporate Restructuring (Including the Corporate Bankruptcy Restructuring Process and Investment Strategies for Restructuring Stocks)

7. Recruit strategic investors and negotiate specific investment methods and terms with prospective investors; 8. Sign the investment agreement upon reaching consensus; 9. Convene the first creditors’ meeting (non-mandatory); 10. Submit the pre-restructuring work report to the court; [Restructuring Phase] 11. The court issues a ruling accepting the restructuring application, simultaneously terminating the pre-restructuring procedure; 12. The court appoints a restructuring administrator and publicly announces the period for creditors to file claims (30 days); 13. The debtor or administrator drafts and submits a restructuring plan based on the restructuring proposal (the collegiate bench must convene a creditors’ meeting within 15 days of receiving the draft); 14. The restructuring plan draft is approved by separate voting groups comprising creditors, prospective investors, and equity holders; 15. The restructuring plan draft is submitted to the court, which then rules on its approval; 16. Implementation of the restructuring plan; 17. The court rules that implementation of the restructuring plan has been completed. According to the above restructuring process, the restructuring procedure requires—at minimum—30 days for creditor claim registration following the court’s acceptance ruling, plus one day for the creditors’ meeting vote, one day for the court’s ruling on the restructuring plan, one day for plan implementation, and one day for the court’s ruling confirming completion of plan implementation—totaling at least 34 days. Based on this timeline, to complete restructuring before year-end, the court’s acceptance ruling must generally be issued no later than November 25 (theoretically, the latest possible date for the court’s acceptance ruling is December 31, provided plan implementation concludes before the annual report deadline). III. Investment Logic for ST Stocks Under Restructuring Stock Selection: Although the restructuring process appears straightforward, its detailed procedures are extremely complex. Obtaining even the preliminary ‘green light’ for restructuring requires support from local governments, courts, regulators, and approvals from both the Supreme People’s Court and the China Securities Regulatory Commission (CSRC). Therefore, when selecting ST stocks for investment, prioritize enterprises backed by strong local government support. Additionally, the enterprise must possess intrinsic value. Only valuable, profitable companies are likely to receive court approval for restructuring—enabling resolution of existing debt issues (restoring positive net assets) and returning the company to sound operations. Many companies conduct extensive financial write-downs prior to restructuring—recording massive losses to trigger sudden financial crises—followed by gradual recovery via rescue measures. This creates substantial stock price volatility, benefiting all capital participants—a core rationale behind ST stock investing. A useful tip: prioritize ST stocks likely to attract industrial strategic investors. Industrial investors can provide operational synergies and value-added capabilities, whereas financial investors merely supply capital. However, a key challenge is that only a small fraction of currently available restructuring stocks involve industrial investors. Timing: The optimal timing for trading bankruptcy-restructuring stocks is around the period spanning the recruitment of restructuring investors to the announcement of the selected investor. Typically, in the days immediately preceding the official announcement, unconfirmed rumors proliferate widely—often driving the stock price to a short-term peak. Following the announcement, if the selected restructuring investor exceeds market expectations, capital rushes in, triggering consecutive daily涨停 (price limit-up) sessions; conversely, if the investor falls short of expectations, capital rapidly exits, causing sustained downward pressure until the pre-restructuring phase formally transitions into formal restructuring. IV. Information Sources and Common Concerns 1. Most critically, closely monitor the listed company’s official announcements—checking every couple of days for any disclosures regarding major violations by controlling shareholders, such as illegal guarantees or fund misappropriation. Upon detection, exit immediately: unresolved issues of this nature will prevent restructuring approval. 2. Pay close attention to the controlling shareholder. As previously noted, restructuring enterprises require local government backing; thus, state-owned controlling shareholders are optimal. Beyond ownership structure, assess management credibility, government and judicial support, and absence of major unresolved issues.

Just Crowned the A-Share Market’s 'Turnaround King' in Performance—Yet the Major Shareholder Immediately Launches a Round of Share Sales

Zhengdan Chemical, a global leader in TMA (trimellitic anhydride), disclosed its third-quarter 2023 financial report on the evening of October 15. The report revealed that the company’s revenue for the first three quarters surged 130%, while net profit skyrocketed nearly 30-fold—earning it the title of this year’s A-share market ‘Turnaround King’ in performance. Looking back at its post-IPO history, Zhengdan Chemical’s annual revenue had never exceeded RMB 2 billion, and years in which net profit surpassed RMB 100 million were exceedingly rare. Yet this year alone, its first-three-quarters revenue reached RMB 2.6 billion, with net profit hitting RMB 825 million. Zhengdan Chemical has indeed enjoyed an exceptionally lucrative year. Seemingly prescient about its stellar performance this year, Zhengdan Chemical’s stock price also broke free from years of sluggishness: from early February to present, its share price soared from just over RMB 2 to a peak of RMB 36—a more-than tenfold increase. As of the market close on October 23, the stock traded at RMB 26. This year, domestic TMA market prices have surged in an ‘exceptionally strong’ trend. According to institutional data, prices rose from over RMB 10,000 per ton at the start of the year to RMB 50,000 per ton by June. On October 14, the mainstream domestic market transaction price remained between RMB 50,000–52,000 per ton. Zhengdan Chemical is the world’s largest TMA producer, with current annual capacity of 85,000 tons—the highest globally. The global TMA market exhibits an oligopolistic structure, with Zhengdan Chemical, INEOS, and Baichuan Chemical holding respective global market shares of 30%, 25%, and 20%. Among the various capital players fueling this speculative surge, foreign institutional investors played a pivotal role. Morgan Stanley and Barclays Bank newly entered the company’s top-ten shareholder list in Q2. In Q3, Morgan Stanley increased its stake by 2.8187 million shares, ranking fifth among major shareholders; Goldman Sachs and UBS Group also newly appeared on the list, ranking seventh and eighth respectively.

Origin Materials shares plunge 45% as company moves to liquidate and sell assets

May 4, 2026

Shares of Origin Materials Inc. fell nearly 45% after announcing plans to liquidate and sell assets due to mounting losses. The materials science firm, known for recyclable PET bottle caps, will cease operations following its strategic review.

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